Critical evaluation of the compliance of online Islamic Forex trading with Islamic principles

Abstract

This paper explores Web-based forex trading which is currently being promoted as as a possible investment opportunity, especially for those of the Islamic faith who are prohibited from dealing in interest-based transactions. Islamic forex is promoted to them as a permissible trade in currency from which they can profit. This paper evaluates the compliance of Islamic Forex trading with Islamic principles through the research question: What is the role of Islamic jurisprudence rulings in promoting or prohibiting forex trading? How Islamic forex trading differs from conventional forex to meet the principles of `Islamic` finance? And finally, can international modern financial institutions operate without the use of such a tool?